A Guide to Starting a Business in Singapore

If you require assistance in registering your business, do check out our rates or get in touch. If you had chosen to register your business as a company, you must apply to ACRA to voluntarily wind up your company or to strike it off the register. Upon registering your business, you will be issued a business profile containing details of your business as well as a Unique Entity Number (UEN) (i.e. your business’ identification number). Apart from complying with the legal regulations, registering your business is also beneficial. Remember that starting a business can be overwhelming, so be sure to have all the right equipment handy to deliver 4 types of financial statements that every business needs your service or products efficiently. At the same time, you might also need software to help you plan and run business operations smoothly.

If you are a Dependant’s Pass (DP) holder who wishes to start a business in Singapore, you can apply for a Letter of Consent (LOC) from MOM to run your business, after what needs to be included in your nonprofits balance sheet registering the business with ACRA. More information on the eligibility and application requirements can be found here. Another important aspect to remember is that companies, unlike sole proprietors, will require ongoing compliance submissions. As mentioned above, taxation and GST applications must be made if your company meets the requirements. However, to continue operating as a company in Singapore, there are a few other aspects that need to be complied with. Where do you see yourself in the long term, especially in terms of your business?

Company

A Limited Liability Partnership (LLP) serves as a business structure in Singapore, providing owners with the flexibility of a partnership combined with a separate legal identity similar to a private limited company. This allows businesses to operate with limited liability for the partners. While a Singapore Private company can have two or more partners, it is limited by a maximum of 50 shareholders. A Public Company Limited can have more than the allowed amount of shareholders for a Private company and can raise capital from the public. A key element of this business structure is its legal identity, which is separate from its owners.

How To Register a Company in Singapore in 2024

Alternatively, you may wish to delegate this task to a corporate secretarial firm to manage your business’ obligations in this aspect. Failure to file a business’ income tax returns on time is an offence, and you will be liable to pay a 5% late payment fee or even face legal action should your business repeatedly fail to settle the payment. MOM approves EntrePass for eligible foreign entrepreneurs starting businesses in Singapore with venture backing or innovative technologies.

1. One of the most important steps in starting a business in Singapore is registering your business.
2. The first important choice to make would be to choose a business structure based on your considerations regarding capital, number of owners and risks.
3. As an employer, the broad considerations you would likely have to take into account are largely detailed in the Employment Act – the key legislation governing the employer-employee relationship.
4. To customers and suppliers, a registered business provides legitimacy because information about your business can be searched and verified via ACRA.
5. Singapore boasts one of the most attractive corporate tax rates at 17% on chargeable income.

There are many financing options which types of liabilities in accounting are available that would fit any size of your business. Just research according to your needs and study their offering before committing to one.

You will need to understand the key differences between the structures and decide which is right for your business. Certain businesses may require various licences or permits to operate in Singapore. There are many regulatory requirements surrounding many different industries.

Private Limited Company (Pte. Ltd.)

Learn about the different business structures and find out which one best suits your business. Upon successful registration of your business entity, you may need to apply for a licence or permit from other government agencies before commencing business. In Singapore, all businesses are generally required to register with the Accounting and Corporate Regulatory Authority (ACRA). Exemptions are granted for business owners who operate their businesses using their names as reflected in their NRICs. Separately, should you wish to hire foreign workers for your business, you must also obtain work permits for these employees. The permits required for the foreign workers you intend to hire are dependent on the skill level of your workers.

Step 3: Appoint a Local Authorised Representative

Simply put, a single individual providing or doing activities can register himself or herself as the owner to become a formal business. The application fee for sole proprietorships and partnerships, LP and LLP is $100. If you plan to own a simple business, keep it simple and select the sole proprietorship structure. However, if your business will involve a lot more complex activities, then it is best to go for a much more structured approach, like a private limited company. Study the nature of your business before selecting an appropriate structure. In this business structure, you can have a maximum of 20 partners only.

Section 171 requires all companies in Singapore to appoint a corporate secretary whose main duty is to ensure that the company complies with Singapore’s laws. When the company is incorporated, Company Secretary can be left blank initially. However, the Company Secretary must be appointed within 6 months of incorporation. Before registering your business with ACRA, you need to register your business name. Additionally, there are a few exemptions to the mandatory requirement of registration. For instance, you are not required to register your business if you intend to carry on your business as an individual under your full name, or if your income is tax-exempt under the First Schedule to the Income Tax Act.